FSA and Lay off

[Guest sfranklin]

I have a company that has laid off an employee who is enrolled in an FSA. What our my options regarding her FSA since we don't know if this is going to be permanent or not. Any help would be grateful:)

[A Shot in the Dark]

A lay off temporary or not meets the definition of a change in status, thus allowing the participant to change his/her election. Presumably the participant would elect to make no further contributions to the FSA.

If the employee does not return to work the separation of service cerates cessation of participation. The terminated participant would be able to submit claims for the amount accrued in the FSA account during the appropriate period of time allowed to submit claims.

If the employee returns to work that would be a change in status and the employee could elect to change his/her election and begin making contributions to the FSA or not.

Again they would be able to submit claims during the appropriate period of time allowed to submit claims.